Reddit's (RDDT) Buy Rating Reaffirmed at Needham & Company LLC

Key Points

• Needham & Company LLC reiterated its Buy rating on Reddit and maintained a $300 price target, implying about 81.55% upside from the prior close.
• Analyst sentiment remains generally positive, with 18 Buy ratings and 12 Hold ratings across the coverage universe. The current consensus is a Moderate Buy with a $230.75 average target.
• Reddit recently reported strong quarterly results, posting $1.01 EPS on $663.41 million in revenue, both above estimates, while revenue jumped 69.1% year over year.

Reddit (NYSE:RDDT - Get Free Report)'s stock had its "buy" rating restated by analysts at Needham & Company LLC in a report issued on Wednesday,Benzinga reports. They presently have a $300.00 price objective on the stock. Needham & Company LLC's price target would suggest a potential upside of 81.55% from the stock's previous close.

Several other analysts have also recently issued reports on RDDT. Citizens Jmp reduced their price target on shares of Reddit from $250.00 to $240.00 and set a "market outperform" rating on the stock in a research report on Friday, May 1st. Raymond James Financial set a $180.00 price objective on shares of Reddit and gave the company a "market perform" rating in a report on Friday, May 1st. Loop Capital reaffirmed a "buy" rating and set a $260.00 target price on shares of Reddit in a research note on Thursday, June 4th. Piper Sandler reiterated an "overweight" rating and set a $215.00 target price (up from $205.00) on shares of Reddit in a report on Friday, May 1st. Finally, Oppenheimer reissued an "outperform" rating and issued a $225.00 price target on shares of Reddit in a research report on Friday, May 1st. Eighteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $230.75.

Reddit Stock Down 3.1%

NYSE:RDDT opened at $165.24 on Wednesday. Reddit has a 52 week low of $119.27 and a 52 week high of $282.95. The stock's fifty day moving average is $162.05 and its two-hundred day moving average is $174.58. The stock has a market capitalization of $31.81 billion, a price-to-earnings ratio of 47.21 and a beta of 1.91.

Reddit (NYSE:RDDT - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.62 by $0.39. The firm had revenue of $663.41 million for the quarter, compared to the consensus estimate of $607.74 million. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The company's quarterly revenue was up 69.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.13 EPS. On average, sell-side analysts expect that Reddit will post 4.83 EPS for the current fiscal year.

Insider Transactions at Reddit

In related news, COO Jennifer L. Wong sold 39,167 shares of the company's stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at approximately $175,752,182.97. This represents a 3.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Steve Ladd Huffman sold 18,000 shares of Reddit stock in a transaction that occurred on Tuesday, March 31st. The stock was sold at an average price of $132.77, for a total transaction of $2,389,860.00. Following the completion of the transaction, the chief executive officer owned 411,195 shares of the company's stock, valued at $54,594,360.15. This represents a 4.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 241,000 shares of company stock valued at $39,303,645. 28.48% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Militia Capital Management LLC acquired a new stake in shares of Reddit during the 1st quarter worth about $2,378,000. Evansbrook LLC lifted its stake in Reddit by 2.2% during the first quarter. Evansbrook LLC now owns 2,736 shares of the company's stock worth $368,000 after purchasing an additional 59 shares during the last quarter. Anson Funds Management LP acquired a new position in Reddit in the first quarter valued at approximately $3,030,000. Janus Henderson Group PLC boosted its holdings in Reddit by 7.0% in the first quarter. Janus Henderson Group PLC now owns 9,130 shares of the company's stock valued at $1,230,000 after purchasing an additional 600 shares in the last quarter. Finally, Arkadios Wealth Advisors increased its stake in Reddit by 1.2% in the first quarter. Arkadios Wealth Advisors now owns 11,418 shares of the company's stock valued at $1,537,000 after purchasing an additional 132 shares during the last quarter.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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